Carlson Unit To Seek Nod For Hotels

Country Development and Management Services (CDMS), joint venture of Chanakya Hotels and Carlson Hospitality, will move the Secretariat of Industrial Approvals (SIA) this week for investing in the country.

The hotel management company is seeking approval for investing $100,000, president of Chanakya Hotels Ltd, Ranjan Bhattacharya said in an interview to PTI. CDMS, a 74:26 joint venture between Chanakya Hotels and Carlson Hospitality worldwide, was formed in January this year to manage upcoming Indian outlets of Carlson's Country Inns and Suites brand of hotels. "This company will be the master franchiser for Country Inns and Suites brand in India," Bhattacharya said.

Country Inns and Suites is opening eight hotels at Puri, Mussorie, Calcutta, Lonavala, Gurgaon, Katra and the remaining two in south India. While the Country Inn at Puri and Calcutta would be owned by Panchvati resorts, the one at Katra would be owned by American Hotels and Resorts Company. Most of these hotels would become operational by the year 2000. Carlson Hospitality worldwide, part of the $20 billion Carlson Companies Inc, one of America's largest privately held corporations owns brands like Regent International Hotels, Radisson Hotels Worldwide, Country Inns and Suites, TGI Fridays and Italiannis.

The management company Chanakya Hotels is promoted by Shiv Jatia of the Jatia group (who is also a part owner of the Asian Hotels-promoted Hyatt Regency Delhi) and Ranjan Bhattacharya.

Bhattacharya said as of now equity participation in franchise hotels was no t being contemplated by CDMS."Right now we are not doing any equity participation. But in the future and on a case by case, we are not averse." As per the agreement between the two, Chanakya Hotels would have to bring five properties to the joint ventures in a time frame of eight years.

"We are starting off with one outside Delhi, in Gurgaon and one at Lonavala. They are being built by us. Since Chanakya is a management company now we do not have any properties. But we will not take the acquisition route to expand," he said. Country Inns and Suites are generally of 80 to 100 rooms and built at a cost of Rs 15 lakh to Rs 20 lakh per room and the Delhi one would be opened within a year and a half.

Carlson has already inaugurated a Radisson and TGI Friday in the capital and is planning to open five TGI Fridays, two Regent Hotels and four Radisson Hotels.